Supreme Court of Canada Hearings

Her Majesty the Queen v. Alta Energy Luxembourg SARL (39113)

The respondent, a resident of Luxembourg, claimed an exemption from Canadian income tax under Article 13(5) of the Canada-Luxembourg Income Tax Convention 1999 (Treaty) for a large capital gain arising from the sale of the shares of its wholly-owned Canadian subsidiary, Alta Energy Partners Canada Ltd. (“Alta Canada”). Alta Canada carried on an unconventional shale oil business in the Duvernay shale oil formation of Northern Alberta, controlling a net acreage of 67,891 and drilling six horizontal and vertical wells in the relevant period. An issue arose as to the application of Article 13(4) of the Treaty, under which Canada retains the right to tax capital gains arising from the disposition of shares whose value derives principally from immovable property. The respondent relied upon an exclusion to that provision that applies when the business of the company was carried on in the property. The appellant denied the exemption on the ground that substantially all Alta Canada’s interest remained Immoveable Property because it drilled and extracted in only a small portion of the area it controlled and had allegedly acquired the leases and licenses with an intention of selling them in the short-term. Alternatively, the appellant argued that the General Anti-Avoidance Rule (“GAAR”) under s. 245 of the Income Tax Act, R.S.C. 1985, c. 1 (5th Supp) (the “Act”) operated to deny the tax benefit. The parties agreed that there was a “tax benefit” and an “avoidance transaction” but disagreed on whether an “abuse” or “misuse” triggered the application of GAAR.The Tax Court of Canada allowed the respondent’s appeal of the reassessments for the 2013 taxation year and referred the matter back to Minister for reconsideration and reassessment in accordance with its reasons for judgment. It held that the respondent’s interest in the property constituted Excluded Property and that the GAAR did not prevent the respondent’s entitlement to the exemption under Article 13(5) of the Treaty. The Federal Court of Appeal dismissed the appellant’s appeal. Keywords Legislation - Interpretation, Taxation - Legislation - Interpretation - Taxation - International Tax Treaties - Did the Federal Court of Appeal err in law in equating the object, spirit and purpose of the relevant treaty provisions with their textual meaning - Did the Federal Court of Appeal err in law and in fact in concluding that the avoidance transactions in this case did not result in an abuse of the relevant treaty provisions - Income Tax Act, R.S.C. 1985, c. 1 (5th Supp), ss. 2(3), 115(1) and 248(1) - Convention between the Government of Canada and the Government of the Grand Duchy of Luxembourg for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, Articles 1, 4, 13(4) and 13(5). Notes (Federal Court) (Civil) (By Leave) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Trial Lawyers Association of British Columbia v. Royal Sun Alliance Insurance Company of Canada (38949)

Steven Devecseri was insured by the respondent Royal & Sun Alliance Insurance Company of Canada (“RSA”) under a standard motor vehicle policy. Under this policy, Mr. Devecseri was prohibited from operating a motorcycle with any alcohol in his bloodstream. To do so would constitute a policy violation. In 2006, Jeffrey Bradfield, Mr. Devecseri and another were riding their motorcycles. Mr. Devecseri drove onto the wrong side of the road and collided with an automobile. Mr. Devecseri was killed. Mr. Bradfield the automobile driver were injured. RSA engaged an adjuster to investigate the accident. The adjuster obtained the police report, which made no mention of alcohol. The adjuster noted that the coroner’s report would confirm whether alcohol had been a factor in the accident, but neither he nor RSA took steps to obtain the report. Mr. Bradfield commenced and later settled an action against Mr. Devecseri’s estate and his own insurer for uninsured and underinsured coverage. The other motorcyclist brought a personal injury action against Mr. Devecseri and Mr. Bradfield. RSA retained counsel to defend Mr. Devecseri’s estate in both actions.Three years after the accident, RSA became aware that Mr. Devecseri had consumed beer before the accident. It then took steps to obtain the coroner’s report, which confirmed that Mr. Devecseri’s blood alcohol level was above zero at the time of death. RSA then took the position that the matter was off-coverage and it stopped defending Mr. Devecseri’s estate. Mr. Bradfield commenced an action against RSA alleging that it was too late for RSA to take an off-coverage position. He argued that, having defended Mr. Devecseri’s estate to the point of examinations for discovery even though it was or should have been aware of the policy breach, RSA had waived Mr. Devecseri’s policy breach, or was estopped for denying the coverage.The chambers judge granted the application, finding that RSA’s failure to take an off-coverage position after June 2006, and its defence of the claim amounted to a waiver by conduct of Mr. Devecseri’s breach of the insurance policy. The Court of Appeal allowed RSA’s appeal and dismissed Mr. Bradfield’s action. Keywords Insurance - Automobile insurance, Contracts, Estoppel - Insurance - Automobile insurance - Exclusions - Contracts - Waiver - Estoppel - Reasonable investigation of policy breach - Insured caused vehicular accident insured by defendant insurer - Plaintiff injured in accident - Policy prohibited operating vehicle with blood alcohol level above zero - Insurer retained counsel to defend insured’s estate - Insurer later obtained coroner’s report indicating insured’s blood alcohol level was above zero at time of accident - Insurer took off-coverage position - Whether the Court should decide case despite mootness - Whether insurer could use insured’s policy breach as a defence to injured party’s action - How the Insurance Act scheme interacts with waiver and estoppel with respect to rights under insurance contract - When insurer’s assumption and continuation of defence of action is assurance of coverage for purposes of estoppel - If so, what amounts to “detrimental reliance”. Notes (Ontario) (Civil) (By Leave) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Tamim Albashir v. Her Majesty the Queen (39277)

(PUBLICATION BAN IN CASE)On December 22, 2016, the appellant, Mr. Albashir, was charged with several offences related to his operation of a commercial trade, including living on the avails of prostitution contrary to s. 212(1)(j) of the Criminal Code, R.S.C. 1985, c. C-46, between March 15 and December 5, 2014. Despite finding factual guilt on all counts, the trial judge quashed the s. 212(1)(j) counts on the indictment as unconstitutional, relying on Canada (Attorney General) v. Bedford, 2013 SCC 72, [2013] 3 S.C.R. 1101. On December 20, 2013, in Bedford, the Court held that s. 212(1)(j) was overbroad and could not be saved under s. 1 of the Canadian Charter of Rights and Freedoms, but suspended the declaration of invalidity for a period of one year.The British Columbia Court of Appeal allowed the Crown’s appeal and ordered that convictions be entered for the s. 212(1)(j) counts, finding that the trial judge fell into error when he quashed them. Since Parliament replaced s. 212(1)(j) with a new offence that largely mirrors its predecessor in substance but carves out a number of exceptions intended to address concerns over security of the person raised in Bedford within the period of the suspension, conduct captured by the former iteration of the offence during the suspended declaration of invalidity is prosecutable. During the suspension period, s. 212(1)(j) was constitutionally valid. The retroactive effect of a suspended declaration of invalidity is pre-empted by the passing of remedial legislation: the declaration of invalidity never came into effect to render the provision a nullity ab initio. Keywords Constitutional law - Criminal law, Legislation - Constitutional law - Criminal law - Legislation - Declaration of invalidity - Living on avails of prostitution - Temporary suspension of declaration of invalidity - Parliament repealing and replacing legislation before expiration of suspended period - What is the effect of a suspended declaration of invalidity if Parliament repeals and replaces the legislation found to be constitutionally invalid prior to the expiry of the suspended declaration?. Notes (British Columbia) (Criminal) (As of Right) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Her Majesty the Queen v. Richard Vallières (39162)

In 2016, the respondent, Mr. Vallières, was convicted by a jury of offences relating to fraud, trafficking and theft of maple syrup from the Fédération des producteurs acéricoles du Québec. The proceeding that led to this appeal concerned the sentencing for those offences.The Superior Court was of the view that the various criteria applicable to fines in lieu, established both by the Criminal Code and by the case law, were met in this case. As a result, it found that it had no choice but to impose a fine in lieu, given that the stolen property could not be recovered. With regard to determining the value of the property (s. 462.37(3) of the Criminal Code), it noted that judicial discretion was limited and that the amount of the fine had to be equal to the value of the property the accused had in his possession or under his control. It held that the evidence in this case showed beyond a reasonable doubt that Mr. Vallières had received $10,000,000 from the theft, and it therefore found that it had no choice but to order the payment of a fine of $9,393,498 ($10,000,000 minus US$606,501 claimed under the restraint order, which was not in issue).The Court of Appeal unanimously allowed the appeal on this point. In its view, the amount of the fine in lieu — $10,000,000 minus the amount of the restitution order — seemed exorbitant. It found that the proper approach was the one taken by the Ontario Court of Appeal in Dieckmann (2017 ONCA 575): where there is sufficient evidence, a court may exercise its discretion to set a fine that reflects the profit the offender received from the criminal activity, provided that the dual objectives of depriving offenders of the proceeds of crime and deterring criminal organizations and accomplices are met. It found that the trial judge had erred in stating that he had no choice but to order the payment of $9,393,498.44 and that this error in principle had led to the imposition of a fine that was demonstrably unfit and was a substantial and marked departure from the fine imposed on the other co accused who had the stolen syrup in their possession. The Court of Appeal held that the fine in lieu should be $1,000,000 minus the amount of the restitution order (US$606,501) based on the foreign currency conversion suggested by the Crown, for a total of $171,397.57. Keywords Criminal law - Sentencing - Criminal law - Sentencing - Fine in lieu - Whether Quebec Court of Appeal erred in law in determining and applying proper legal framework for calculating fine in lieu of forfeiture of proceeds of crime - Whether Court of Appeal erred in law by failing to allow parties to be heard regarding change to quantum of fine in lieu even though Mr. Vallières had not raised this issue in his appeal - Criminal Code, R.S.C. 1985, c. C 46, s. 462.37. Notes (Quebec) (Criminal) (By Leave) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Matthew Winston Brown v. Her Majesty the Queen (39781)

The appellant attended a party where he consumed alcohol and magic mushrooms. While intoxicated, he broke into two homes. In the first, he beat the lone occupant with a hard object, causing her serious injuries. In the second, he caused damage to property. At trial, the appellant brought a constitutional challenge to s. 33.1 of the Criminal Code, R.S.C. 1985, c. C-46, which precluded him from availing himself of the defence of non-mental disorder automatism to the charge of breaking and entering with commission of an aggravated assault. The application judge held that s. 33.1 infringes both ss. 7 and 11(d) of the Canadian Charter of Rights and Freedoms, and declared s. 33.1 to be of no force or effect. The trial judge accepted expert evidence that the appellant was in a state of automatism at the time of the offences, and acquitted him of all charges. The Crown appealed, and the Court of Appeal for Alberta allowed the appeal, set aside the declaration of invalidity, set aside the acquittal on the charge of breaking and entering with commission of an aggravated assault, and entered a conviction on the lesser and included offence of aggravated assault. Keywords Constitutional law - Canadian charter (Criminal) - Constitutional law - Charter of Rights and Freedoms - Defence of non-mental disorder automatism not available if accused’s state of automatism due to self-induced intoxication pursuant to s. 33.1 of Criminal Code, R.S.C. 1985, c. C-46 - Whether s. 33.1 infringes ss. 7 or 11(d) of the Charter - If so, whether the infringement justified under s. 1 of the Charter. Notes (Alberta) (Criminal) (As of Right) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Law Society of Saskatchewan v. Peter V. Abrametz (39340)

This case arises from disciplinary proceedings pursued by the appellant, the Law Society of Saskatchewan (“LSS”), against the respondent lawyer, Peter V. Abrametz. Those proceedings, which began with an audit investigation initiated in 2012, resulted in a January 10, 2018, decision in which a Hearing Committee of the LSS found Mr. Abrametz guilty of four counts of conduct unbecoming a lawyer. The convictions were for breaches of the Law Society of Saskatchewan Rules and the version of the Code of Professional Conduct that was then in effect.On January 18, 2019, the Hearing Committee ordered Mr. Abrametz disbarred, with no right to apply for readmission as a lawyer prior to January 1, 2021. In its November 8, 2018, stay decision, the Hearing Committee dismissed Mr. Abrametz’s application to stay the proceedings as a result of undue delay constituting an abuse of process.Mr. Abrametz appealed his conviction and the penalty decision to the Court of Appeal pursuant to s. 56(1) of The Legal Profession Act, 1990, S.S. 1990-91, c. L-10.1. The Court of Appeal allowed the appeal in part; it stayed the Law Society proceedings; set aside the imposed penalty and costs awards but findings of professional misconduct were maintained. Keywords Administrative law - Abuse of process - Administrative law — Abuse of process — Delay — Disciplinary proceedings pursued by Law Society against lawyer — Hearing Committee dismissing lawyer’s application to stay proceedings as a result of undue delay constituting an abuse of process — Court of Appeal allowing appeal in part — What is applicable standard of review — What are principles applicable to administrative delay — Whether Court of Appeal erred in its Blencoe v. British Columbia (Human Rights Commission), 2000 SCC 44, [2000] 2 S.C.R. 307 analysis — Whether law in respect of administrative delay should be changed in light of R. v. Jordan, 2016 SCC 27, [2016] 1 S.C.R. 631 and Hryniak v. Mauldin, 2014 SCC 7, [2014] 1 S.C.R. 87. Notes (Saskatchewan) (Civil) (By Leave) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Cameron O’Lynn Parranto also known as Cameron O’Lynn Rocky Parranto, et al. v. Her Majesty the Queen, et al. (39227)

A police search of Mr. Parranto on arrest and searches of his residence found fentanyl, other drugs, cash, weapons and drug paraphernalia. Mr. Parranto pleaded guilty to 8 offences including two counts of wholesale trafficking in fentanyl. On the two counts of wholesale trafficking in fentanyl, he was sentenced to 4 years and 5 years consecutive. In six transactions, Mr. Felix sold fentanyl and cocaine to an undercover police. Mr. Felix pleaded guilty to four offences including two counts of wholesale and commercial trafficking in fentanyl. On the counts of trafficking in fentanyl, Mr. Felix was sentenced to two 7-year terms concurrent. On appeals from the sentences, the Court of Appeal established a starting point of 9 years for sentences for wholesale trafficking in fentanyl. It sentenced Mr. Parranto to two 7-year terms consecutive for trafficking in fentanyl and Mr. Felix to two 10-year terms concurrent for trafficking in fentanyl. Keywords Criminal law - Sentencing - Criminal law - Sentencing - Standard of review on sentence appeal - Whether Court of Appeal erred in setting a starting-point for sentencing for wholesale fentanyl trafficking - Whether starting point approach to sentencing improperly emphasizes parity of sentence at the expense of individualization of sentence - Whether Court of Appeal erred in reversing sentencing judge because sentencing judge refused to adopt a starting-point approach- Whether Court of Appeal misapplied standard of appellate review for sentencing decisions?. Notes (Alberta) (Criminal) (By Leave) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Victor Samaniego v. Her Majesty the Queen (39440)

The appellant was jointly charged and tried by a jury with his co-accused of possession of a loaded restricted firearm. It was alleged that the appellant had brought the firearm to a nightclub and used it to threaten a security guard (“witness”) at the club’s entrance, and that the co-accused took possession of the weapon shortly thereafter. The witness’s credibility was central to the Crown’s case. The trial judge made a number of mid-trial rulings which had the effect of preventing the appellant’s counsel from cross-examining the witness on his prior statements to police and at the preliminary inquiry, and she disallowed a line of questioning related to alleged discreditable conduct by the co-accused. The trial judge also directed the jury that the witness had made prior consistent statements, but did not require those statements to be put into evidence. Both the appellant and his co-accused were found guilty.The appellant appealed his conviction, alleging that the trial judge erred in limiting the witness’s cross-examination by the appellant’s counsel and in misdirecting the jury on the witness’s prior consistent statements. He also argued that the errors undermined the fairness of the trial. A majority of the Court of Appeal dismissed the appeal, holding that the rulings were trial management decisions within the discretion of the trial judge which are entitled to deference. The rulings did not deprive the appellant of material evidence necessary for his defence and did not impact the fairness of the trial. In dissent, Paciocco J.A. would have allowed the appeal and ordered a new trial. In his view, the trial judge’s rulings deprived the appellant of important evidence related to the witness’s credibility, and the fairness of the trial was undermined by the trial judge’s errors. Keywords Criminal law - Evidence - Criminal law - Trial management powers - Evidence - Admissibility of evidence - Cross-examination - Credibility - Prior inconsistent statements - Prior consistent statements - Trial fairness - Whether the majority of the Court of Appeal erred in finding that the trial judge’s mid-trial rulings were a proper exercise of her trial management powers and subject to deference - Whether the majority of the Court of Appeal erred in finding that the mid-trial rulings did not render the trial unfair by depriving the appellant of the ability to make full answer and defence. Notes (Ontario) (Criminal) (As of Right) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Jason William Cowan, et al. v. Her Majesty the Queen, et al. (39301)

Following a trial before a judge sitting alone Mr. Cowan was acquitted of armed robbery and having his face masked with intent to commit robbery. The Crown’s theories at trial were that Mr. Cowan was the masked robber and, as such, he was guilty as a principal offender, or that Mr. Cowan was guilty as party to the offence because, by providing instruction to the men he named in his warned statement on how to commit a robbery, he encouraged and/or counselled them to commit that offence. The trial judge found that the Crown had failed to prove Mr. Cowan’s guilt on the basis of either theory.A majority of the Court of Appeal allowed the Crown’s appeal from the acquittal on the charge of armed robbery, set aside Mr. Cowan’s acquittal, and ordered a new trial proceeding from the footing that the question to be determined is whether Mr. Cowan is guilty of robbery, as a party, on the basis of abetting or counselling. Although it dismissed the Crown’s arguments under the principal theory, the majority was satisfied that the trial judge made a legal error in the application of s. 21(1)(c) and s. 22(1) of the Criminal Code, R.S.C. 1985, c. C-46, by restricting himself to consideration of whether the Crown had proven that Mr. Cowan abetted or counselled the principal offender(s). That error had a material bearing on Mr. Cowan’s acquittal, because it led the trial judge to overlook relevant and probative evidence which strongly supported a finding of guilt.Jackson J.A., dissenting, would have dismissed the Crown’s appeal in its entirety. She agreed with the majority that the Crown had not discharged the burden upon it to justify a new trial on the basis that the trial judge made an error of law when he concluded Mr. Cowan had not personally committed the offence of robbery. However, she also concluded that the trial judge did not err by limiting himself to considering two named individuals only as being principals only to the offence, as he was responding to the evidence and submissions. If the trial judge did commit an error of law, Jackson J.A. was of the view that it was not of sufficient materiality for the court to overturn the acquittal and order a new trial. Keywords Criminal law - Appeals - Criminal law - Appeals - Appeal by Crown against acquittal - Error of law - Parties to offence - Did the majority of the Court of Appeal err in determining the trial judge committed an error in law by limiting himself to considering two named individuals only, apart from the accused, as being principals only to the offence? - Did the majority of the Court of Appeal err in determining that if the trial judge had so erred, the Crown had discharged the burden upon it to demonstrate that the error might reasonably be thought, in the concrete reality of the case at hand, to have had a material bearing on the acquittal? - Criminal Code, R.S.C. 1985, c. C-46, ss. 21(1)(c), 22(1). Criminal law - Appeals - Powers of Court of Appeal - Appeal by Crown against acquittal - Error of law - Parties to offence - Order of Court of Appeal limiting scope of new trial - Did the majority of the Court of Appeal err by ordering a trial limited to the issue of party liability?- Criminal Code, R.S.C. 1985, c. C-46, s. 686(8). Notes (Saskatchewan) (Criminal) (As of Right / By Leave) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).

Matthew Stairs v. Her Majesty the Queen (39416)

The appellant, Matthew Stairs, was charged with assault, breach of probation, and possession of methamphetamine for the purpose of trafficking. At trial, he brought a ss. 8, 9 and 24(2) Charter application. He argued that he was the subject of cascading Charter breaches, starting with an unlawful entry into his home and ending with an unlawful search. The application was dismissed and the appellant was convicted of the three charges.The appellant appealed his conviction of possession for the purpose of trafficking only. The appeal rested on a challenge to the Charter ruling. A majority of the Court of Appeal dismissed the appeal. It held that the trial judge did not err in concluding that the police had sufficient grounds to arrest him and in concluding that a Feeney warrant was not required to make the arrest inside of the home. The majority also held that the trial judge was right to conclude that the discovery and seizure of the methamphetamine was not a s. 8 Charter breach. The fact that the methamphetamine was sitting out in plain view meant that it could be seized.The dissenting judge would have allowed the appeal and entered an acquittal for the count of possession in issue. He agreed with the majority’s analysis and conclusion concerning the police entry into the residence, that the police had valid grounds to arrest the appellant, and that the police did not require a Feeney warrant. He disagreed with the majority’s s. 8 Charter breach analysis. In his view, the officers did not have sufficient objectively reasonable grounds to conduct a safety search of the basement living area. The warrantless search breached the s. 8 rights of the appellant and he would have therefore excluded the evidence under s. 24(2) of the Charter. As there was no other evidence on the drug charge, he would have set aside the conviction and entered an acquittal for the count in issue. Keywords Criminal law - Canadian charter (Criminal), Search and seizure (s. 8) - Criminal law - Charter of Rights - Search and seizure - Application of doctrine of search incident to arrest - Whether the majority of the Court of Appeal for Ontario erred in law in upholding the trial judge’s ruling that the search of the accused’s home was lawful and did not violate his right against unreasonable search and seizure pursuant to s. 8 of the Canadian Charter of Rights and Freedoms - Whether the doctrine of search incident to arrest applies, without modification, to searches conducted in a home following a warrantless arrest - What is the standard justifying a warrantless search of a residence as an incident of an arrest?. Notes (Ontario) (Criminal) (As of Right) Disclaimers This podcast is created as a public service to promote public access and awareness of the workings of Canada's highest court. It is not affiliated with or endorsed by the Court. The original version of this hearing may be found on the Supreme Court of Canada's website. The above case summary was prepared by the Office of the Registrar of the Supreme Court of Canada (Law Branch).